Windows on a chip...
I seem to remember the same type of thing...a hardwired OS or chip that was to be virus proof, but could be somehow updated at a later date. Sounded like a great idea at the time but nothing came of it.
The old C64 had its OS built in too, but that was little more than Basic.
Mac, Amiga and Atari ST all had the full OS on a ROM back then. I remember you could run Mac on the ST if you had the Mac ROMs in a cartridge (both were M68K systems, but the ST was clocked a bit higher).